Dr Reddy’s to buy UK firm’s Nicotinell business for £500 mn

Pharma major Dr Reddy’s Laboratories is set to buy British consumer healthcare giant Haleon’s nicotine replacement therapy (NRT) portfolio, excluding the US business, for a 500 million pounds.
 
The portfolio being acquired by the Hyderabad-based company includes Nicotinell, touted as the second biggest brand in the NRT space globally with a footprint in 31 countries across Europe, Latin America and Asia. Nicotinell is branded as Nicabate in Australia, Thrive in Canada and Habitrol in New Zealand and Canada.
“The proposed acquisition will be inclusive of all formats such as lozenge, patch, gum as well as pipeline products in all the applicable global markets outside of the US,” Dr Reddy’s said. As part of the deal, a wholly-owned subsidiary of Dr Reddy’s will acquire 100% stake in newly incorporated Haleon group company, Northstar Switzerland. The company has inked a definitive agreement for the same, it said in a filing.
The deal includes an upfront payment of 458 million pounds as well as performance-based contingent payments of up to 42 million pounds that will be payable in 2025 and 2026. The transaction is expected to close in the fourth quarter of 2024 and is subject to satisfactory completion of customary conditions, including regulatory approvals.
Dr Reddy’s said the deal will give it access to a global OTC (over-the-counter) anchor brand through a strong footprint in Europe and other global markets and could be a potential vehicle to build its global consumer healthcare OTC business.